McMullan v. Friend

642 S.W.2d 15, 77 Oil & Gas Rep. 152, 1982 Tex. App. LEXIS 5002
CourtCourt of Appeals of Texas
DecidedAugust 18, 1982
Docket7156
StatusPublished
Cited by6 cases

This text of 642 S.W.2d 15 (McMullan v. Friend) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McMullan v. Friend, 642 S.W.2d 15, 77 Oil & Gas Rep. 152, 1982 Tex. App. LEXIS 5002 (Tex. Ct. App. 1982).

Opinion

OPINION

OSBORN, Justice.

Alleane Friend McMullan and her husband, D.K. McMullan, appeal from a judgment reforming a royalty deed in which they were the grantees and the Appellees, Bill Y. Friend and wife, Ima Jeanne Friend, were grantors. The judgment was based upon a jury verdict that the 1965 royalty deed was the result of a mutual mistake. We affirm.

Upon his death in 1951, H.J. Friend, the owner of a 5,238 acre ranch in Crockett County, left his ranch, subject to a life estate to his wife, in equal undivided shares to his son Bill, his daughters Alleane and Margaret and a granddaughter, Jacquelyn. An agreed judgment in 1962 partitioned the North One-half of the surface estate of the ranch to Bill and Alleane and the South One-half of the surface estate to Margaret and Jacquelyn. All of the minerals remained undivided between the four devi-sees. In 1964, Bill executed a deed conveying to Alleane:

[A]ll my right, title and interest, including all of my undivided one-fourth interest (Vi) in and to all of the H.J. Friend Ranch, containing 5,238.8 acres of land in Crockett County, Texas, * * * and this conveyance covers and includes the undivided one-half interest in and to the said north part of said Ranch awarded to Bill Y. Friend under the provisions of that (agreed) judgment, together with my interest in the oil, gas and mineral leasing rights there provided on the said north part of the said Ranch, and all other rights, title and interests awarded to me, the said Bill Y. Friend, under the provisions of that judgment, including my undivided one-fourth interest there retained in and to all the minerals under all those Ranch lands * * *

The deed then reserves to Bill Friend a one-fourth non-participating royalty for a term of twenty years and as long thereafter as minerals are produced in paying quantities.

In 1965, Bill and Ima Jeanne conveyed to Alleane by a royalty deed:

“[A]ll our interest in and to all of the oil royalty, gas royalty, and royalty in cas-inghead gas, gasoline, and royalty in other minerals in and under, and that may be produced and mined from the following described lands situated in the County of Crockett and State of Texas, to-wit, the lands and interests in lands described in deed dated January 28,1964, * * * and conveying the lands and premises therein described to Alleane Friend McMullan # * ⅜ »

In 1978, wells were drilled and production commenced on the South One-half of the ranch. Bill Friend was paid $31,198.15 in royalty payments. He subsequently conveyed his interest to his daughters and they were paid $2,791.46 before payments were stopped, and this suit commenced to determine what interest Bill Friend and his grantees owned after his above described conveyances.

The jury found that the parties thought that the 1965 royalty deed conveyed only one-half of the royalty interest under the North One-half of the ranch and that if the deed conveyed more interest than that, such was a result of a mutual mistake. Judgment was entered to reform the deed so that it conveyed only a one-half royalty interest in the North One-half of the ranch and no interest under the South One-half of the ranch.

The first point of error asserts the Appellees’ cause of action was barred by the statute of limitations. A suit for reformation of a deed is governed by the four-year statute of limitations contained in Article 5529, and the time for filing suit commences to run when the mistake was, or in the exercise of reasonable diligence, should have been discovered. Brown v. Havard, 593 S.W.2d 939 (Tex.1980). The evidence *18 did not show exactly when Bill Friend knew or should have known of an error or mistake in the deed, although he was put on notice when Amoco Production Company suspended payments and wrote in March, 1980, that future payments would be made to Mrs. McMullan. Prior to that time, he and his daughters were paid for the interest they claimed to own. Whether he should have known of any error prior to suspension of payments was a fact question as to his diligence in discovering the mistake. Brown v. Havard, supra.

In Sullivan v. Barnett, 471 S.W.2d 39 (Tex.1971), the court recognized and noted numerous holdings in which the courts have reformed deeds more than four years after they were executed where the presumption of immediate knowledge is rebutted. In this case, it was rebutted by the testimony of Bill Friend and the evidence which reflected his ownership and the desire of the McMullans to purchase Friend’s remaining interest. Since no issue was submitted to the jury as to when the mistake should have been discovered, the defense of limitations was waived. Rule 279, Tex.R. Civ.P.; Metal Structures Corporation v. Plains Textiles, Inc., 470 S.W.2d 93 (Tex.Civ.App.—Amarillo 1971, writ ref’d n.r.e.). Point of Error No. One is overruled.

Appellants next assert the trial court erred in entering judgment for Appel-lees because there is no evidence that Appellants were mistaken as to the interest conveyed to them. They assert there was no mutual mistake, and if a mistake was made it was unilateral and not grounds for reformation. This contention raises a “no evidence” point. In passing on this issue, the court can consider only that evidence and the reasonable inferences which support the jury verdict. Garza v. Alviar, 395 S.W.2d 821 (Tex.1965). There is testimony from Mrs. McMullan that after the 1965 deed was signed her husband discussed with her purchasing more royalty interest from Bill Friend. There was testimony that D.K. McMullan, after the production on the south one-half of the ranch, told Bill Friend he would like to buy his royalty. This testimony and the reasonable inferences are that Mr. and Mrs. McMullan did not intend to and in fact did not believe that they had acquired all of the royalty owned by Bill Friend as a result of the 1965 royalty deed. Viewed in a light most favorable to the verdict, there is some evidence of a mutual mistake. Point of Error No. Two is overruled.

Appellants further contend that the pleadings do not support a cause of action for reformation of the royalty deed by reason of a mutual mistake. The first amended petition alleges that due to an error the deed “erroneously included mineral interests other than one-half (½) of Bill Y. Friend’s mineral estate under the North one-half (N/2) of the H.J. Friend Ranch. This mineral interest was mistakenly included in the deed.” This pleading clearly raises an issue of mistake as to the interest conveyed. It does not limit the claim to either a unilateral or mutual mistake, and permitted Appellees to prove either one. Appellants could have limited the issue by filing a special exception, but in the absence of such exception they waived any pleading defect. Rule 90, Tex.R.Civ.P.; Murray v. 0 & A Express, Inc., 630 S.W.2d 633 (Tex. 1982). Point of Error No. Three is overruled.

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Bluebook (online)
642 S.W.2d 15, 77 Oil & Gas Rep. 152, 1982 Tex. App. LEXIS 5002, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcmullan-v-friend-texapp-1982.